G-III takes full ownership of Karl Lagerfeld label
G-III ApparelSonia RykielKarl Lagerfeld
The transaction is valued at $210 million (200 million euros), with G-III buying out a group of private and public investors led by Fred GehringPier Paolo Righi
“We have great respect for Karl Lagerfeld’s experienced and talented leadership team, led by Pier Paolo Righi, with whom we have worked closely for the past seven years. This team, combined with G-III’s expertise, is expected to unlock more of the brand’s global potential, which we believe represents a retail sales opportunity in excess of $2 billion,” said the U.S.-based group’s CEO, Morris Goldfarb
“Morris and the G-III team have been part of our family since we joined forces in 2015 to bring the Lagerfeld name to North America. Since then, we have worked together to further grow the brand’s footprint. This transaction is the natural evolution of this positive working relationship,” added Righi.
This transaction marks a milestone for G-III (worth 2.7 billion dollars as of 2021) and underlines the ambitions set by the group, which acquired Sonia Rykiel last year and also has several licensing agreements with brands such as Calvin KleinTommy Hilfiger
As Goldfarb further pointed out, “the addition of this iconic fashion brand to G-III’s portfolio advances several of our key priorities, namely an increase in the direct ownership of brands and their licensing opportunities and further diversification of our global presence.”
Founded in 1984 by Karl Lagerfeld, former creative director of ChanelFendi
The exec successfully repositioned Karl Lagerfeld in the affordable luxury market by increasing its number of licenses – there are currently about 15 in various categories, including ready-to-wear clothing, shoes, bags, eyewear and perfumes – while accelerating retail expansion and digitization. The brand has nearly 120 company-owned and franchised stores and is also available in select multi-brand retailers and its online website. Karl Lagerfeld’s sales increased by 40% in 2021 compared to 2020 ( up 35% compared to pre-pandemic levels), with the company targeting annual growth of around 20-25%.
The deal is expected to close in the second or third quarter of G-III’s 2022-23 fiscal year, and will include Karl Lagerfeld’s 10% stake in its established joint venture in China.